PolychainBacked Lombard Secures 16 Million to Expand Bitcoin Yield Solutions

Polychain-Backed Lombard Raises $16M to Expand Bitcoin Yield Solutions


By Shalini Nagarajan
Published:
July 2, 2024, 10:00 EDT
|
1-minute read


Lombard, a yield-bearing Bitcoin liquidity solution, announced on Tuesday that it successfully secured $16 million in its latest funding round led by Polychain Capital.
Key investors participating in the round include BabylonChain, dao5, Franklin Templeton, Foresight Ventures, and Mirana Ventures. Notably, leading crypto exchanges such as Bitget, Bybit, and OKX also contributed, likely aiming to enhance user engagement through Lombard’s innovative yield-bearing Bitcoin offering.
Founders and executives from prominent firms like Allora, Altlayer, Babylon, BeraChain, Euler, Gearbox, and Pendle also participated in this funding initiative. The team boasts seasoned executives with prior experience at renowned crypto entities such as Argent, Coinbase, and Maple.
LBTC by Polychain-Backed Lombard: Innovating Bitcoin Yield Strategies
Named after London’s famed Lombard Street, Lombard aims to bridge the gap between decentralized finance (DeFi) and the vast $1.5 trillion Bitcoin market liquidity. Its flagship solution, the yield-bearing 1:1 LBTC product, facilitates broader Bitcoin integration into various DeFi platforms for lending, borrowing, and trading.
Luke Pearson, a core contributor to the project, highlighted LBTC’s distinctive feature as a yield-bearing token directly pegged to Bitcoin (1 LBTC = 1 BTC). Unlike traditional wrapping mechanisms, LBTC leverages Babylon’s staking protocol to earn interest.
Moreover, LBTC stands out for its inherent cross-chain compatibility, allowing holders seamless movement within the web3 ecosystem without the need for centralized custodians or bridging mechanisms. Transactions are secured by a consortium of independent validators, ensuring protocol integrity, Pearson explained.
Currently in a private beta phase, Lombard aims for full functionality pending Babylon’s acceptance of deposits by month-end. Subsequently, integration plans include linking LBTC with multiple DeFi protocols on the Ethereum mainnet, with future expansions slated for Ethereum Layer-2 solutions and other major Layer-1 blockchains post-summer.
Lombard’s Funding Milestone Amidst Babylon’s Staking Protocol Investment
Lombard’s successful funding round follows a significant $70 million investment in Babylon, a Binance-backed Bitcoin staking protocol. Babylon’s technology supports Proof-of-Stake (PoS) systems across diverse blockchains, Layer 2 rollups, and Data Availability layers, enhancing security for staked assets without central custodians.
Beyond its financial role, LBTC holds promise in addressing Bitcoin’s environmental impact concerns. Pearson emphasized LBTC’s use of Babylon’s PoS security model and ERC-20 token status, potentially contributing indirectly to sustainability efforts.
Stay Informed with Our Latest Updates on Google News